Gifts of IRAs and Pensions

Donor Benefits:
You will receive an income tax deduction 
It may lower your estate taxes
You may be able to avoid income taxes on distribution
You may be able to avoid estate taxes, excise taxes, and transfer taxes

Today, many people find that one of the more significant assets in their estates is their retirement plan investments. Yet it is one asset that is costly for owners to pass on to heirs after his or her lifetime.

Retirement plans, under certain circumstances, can be subject to taxes of nearly 80 percent when the owner dies and the final distribution is made. This is due to the imposition of some or all of the following: income tax that would have been due had the owner received the distribution, estate and inheritance taxes, excise tax on excess accumulations, and generation skipping transfer tax.

Your estate can save significantly on income, estate, and transfer taxes if you make Commonweal a beneficiary of your individual retirement account, pension, 401K, or other retirement savings plan. You can also arrange for lifetime income to be paid from retirement funds to a family member after your death, with Commonweal’s benefit coming later, or make Commonweal an alternative or contingent beneficiary. Through careful planning, there is a way to minimize estate and income taxes on IRAs and other retirement plan assets. You can retain control of where your funds will go.

Planning Your IRA Legacy

Contact your IRA or plan administrator for a beneficiary designation form and let them know you would like to name Commonweal as the primary beneficiary. The suggested language is as follows:

The ______% beneficiary of my retirement account is Commonweal:

PO Box 316
Bolinas, CA 94924
TIN 94-2366094

Special note: If the plan holder has a surviving spouse, a written waiver is necessary.